Google In Talks To Buy Brightcove For $500-$700 Million: Report*

Update: The "rumor that Google is buying Brightcove is in fact false," claims Web video analyst Dan Rayburn. He cites an employee "I trust" at one of the companies, who would not talk on the record.

Earlier: Google is in talks to buy Web video provider Brightcove for $500 million to $700 million, PBS MediaShift editor Mark Glaser says on Twitter, citing a source with knowledge of the deal.

The move would make Google's YouTube -- by far the top consumer Web video site -- also the most powerful player in the commercial Web video industry.

Brightcove has a long list of top clients including AOL, Conde Nast, The New York Times, etc.

In June, Brightcove CEO Jeremy Allaire told industry analyst Dan Rayburn that the company is profitable and cash flow positive. Rayburn estimates that Brightcove is on pace to do $80 million in sales this year, which would put this deal around 6-9X revenue. Brightcove has raised $91 million to date.

A Google rep says it is company policy to not comment on rumor or speculation.